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Home My WebLink About01-172.doc REVISED APRIL 10, 2001 01-172 RESOLUTION (CARRIED 5-2 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE DEVELOPER AGREEMENT TERMS / 100 BLOCK REDEVELOPMENT PROJECT DEPT OF COMMUNITY DEVELOPMENT. INITIATED BY: BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized and directed to enter into a Developer Agreement with Ganther Construction and Professional Realty and Development Corporation for the 100 Block Redevelopment Project, with substantially the same terms as attached hereto, and to carry out all actions necessary to implement the City's obligations under the Developer Agreement. REVISED TERM SHEET FOR 100 BLOCK DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF OSHKOSH, WISCONSIN AND GANTHER CONSTRUCTION & PROFESSIONAL REALTY AND DEVELOPMENT CORPORATION I. Project a) Development Site: The block bounded by North Main Street, Otter Avenue, State Street and Ceape Avenue b) Development: Mixed use commercial/residential development with underground and surface parking. A preliminary development budget is attached as Exhibit A. c) Minimum Project: A 65,000 square foot four story building containing approximately 49,000 square feet of office/commercial space and one floor of residential units. Project would include underground and surface parking. Estimated project cost of $7,308,400 d) Preferred 'Project: Includes the Minimum Project plus up to an additional two stories of commercial space and/or residential units. Total building structure area will be approximately 114,240 square feet. Estimated project cost of up to $10,489.600 if the two floors are added. II. City Pre-closing Undertaking a) Create Tax Incremental Financing District and adopt Project Plan b) Commit to City contribution based on scope of project to be undertaken with the City's contribution limited to 25 % of project costs. 1). For example, if minimum projectundertaken, City contribution would be a maximum of $1,827,000 or 25% of project costs, whichever is less. 2). For example, if preferred project undertaken, City contribution would be a maximum of $2,622,400 or 25 % of project costs, whichever is less. c) Project Scope and City contribution to be determined prior to closing. d) Arrange borrowing to fund City contribution. e) Provide all approvals, permits and authorizations for project to the extent deemed appropriate by the city with respect to the normal requirements imposed on similar developers. f) Identify and prepare schedule for converting State Street between Otter Ave and Ceape A venue to angle parking (it is understood that preparation of plans and specifications for public improvements will occur following closing). i) Following completion of conversion project, parking spaces on west side of State Street to. be designated for permit parking associated with 100 Block. g) Prepare property for conveyance to Developer at closing (the required site preparation will be identified through engineering documents and set forth with specificity in the Development Agreement). 003.281146.2 2 b) At closing, City will: i h) Environmental conditions: Pri?r to closing, provide developer all available environmental reports prepare~ by City. Reports were designed to provide i information on nature and ext~nt of environmental contamination on the block. i i III. Developer's Pre-closing Obligations a) Cause to organized a partnership or corporation to develop, run, afld manage ! i development b) Organize investors to commit equity /. c) Borrow up to $4.5 million (minimum project) or $6.4 million dollars (preferred project) at a true interest cost not to exceed 7.5 % for a term of not less than 30 years d) Prepare architectural drawings, plans and specifications acceptable to City and the State of Wisconsin e) Obtain all necessary zoning approvals f) Develop plans for leasing and management of the Development g) Arrange construction contracts for Development IV. Closing a) To be held upon satisfactory completion of pre-closing conditions (expected closing by June 6, 2001) b) At closing, City will: 003.281146.2 3 i) Convey development site to developer for $1 in consideration of developer agreeing to comply with applicable CDBG regulations for an economic development project pertaining to low and moderate income job creation requirements and other applicable HUD requirements or convey the block for a fair market value payment. ii) Enter into disbursement agreement setting forth terms and conditions including a formula for City proportionate payment of project costs (with /. entity acceptable to City). iii) Commit to undertake conversion of State Street to angle parking iv) Environmental Conditions: Provide evidence of closure regarding environmental issues associated with the block. c) At closing, Developer will: i) Finalize loan documents for development financing ii) Execute construction contract for development 1) Construction to start no later than September 20, 2001 2) First floor occupancy no later than August 5, 2002 3) Floors 2-4 available for occupancy no later than 12/16/2002 iii) Deliver TIF guarantee to City iv) Deliver mortgage to City securing Developer's performance under Agreement v) All other commitments necessary to assure commencement and completion of development within twenty-four (24) months of date of 003.281146.2 4 a) Developer will deliver to City a guarantee of sufficient revenue to pay debt Closing unless delayed by labor disputes, fire, unusual delay in transportation, adverse weather conditions not reasonably anticipated, unavoidable casualty, flood or acts of God unless such date is extended by . . the City. vi) Execute Disbursement Agreement provision regarding how much the City will pay as part of already spent construction costs vii) Execute CDBG agreement to meet required HUD guidelines regarding the disposition of proper~y that was acquired using CDBG funds /. V. TIF Guarantee a) Developer will deliver to City a guarantee of sufficient revenue to pay debt service on City debt issued to fund City contribution (including any debt service payment that may be due before receipt of incremental taxes) b) Revenue will consist of incremental taxes and, if necessary, additional Developer payments c) City debt payable over 20 years d) Form of guarantee similar to guarantee delivered to City for other projects VI. Mortgage a) Deliver to City a mortgage interest in development to secure developer performance under Agreement b) Subordinate to primary lender(s) 003.281146.2 5 ......-...__._.___.__._._~~---,-_.--:-.~_ .....,u.__.--,--_____w..__._.__----,-_..__~__~____~:.--.---------_..._~-- 6 003.281146.2 VII. Indemnity a) Mutual indemnities with respect to project VIII. Nondiscrimination a) Developer agrees that it will not discriminate in construction, use and operation of Development IX. Insurance a) Developer agrees that it will insure project for such risks and in such amounts as is customary for similar projects /. 003.281146.2 6 I, i ~ ~pe. Ave... ~ This map is n~I~~~ recorded map nor a survey and it is not intended to be used as one. This drawing is a compilation ?f rec?rds, data and information located in various City, co~nty and state offices and other sources affectmg the area shown and it is to be used for.referet nce urposes only. The City of Oshko.sh IS no. re- spoP nsible for any inaccuracies herem contamed. T~ ..J~___~____':...._ __.... r............d ....1................ .....^".....",...+ +ho Redevelopment 100 Block City of Oshkosh Wisconsin ""' _._!""--_ T"Io~___._______..I. o 60 Feet + fE. I i I \0 o N V) o C"-l Dtl-er Ave-- - Ji - - <:: '~ :2: =< BLOCK /. 100 ~ I' I ~ i I ~P€- Ave.. ~ This map is rPeh~~~ recorded map nor a survey and it is not intended to be used as one. This drawing is a compilation of records, data and information located in various city, county and state offices and other sources affecting the area shown and it is to be used for reference purposes only. The City of Oshkosh is not re- sponsible for any inaccuracies herein contained. If discrepencies are found, please contact the City of Oshkosh. Redevelopment 100 Block o I City of Oshkosh Wisconsin Community Development 0' ;""";';";l.~":i~;"; \c:';;i':';;"~:",t~:'0':{ ~ I /:!! ~ C/) 60 Feet + Created by - dm 4/4/01